Examining how AI capabilities can foster organizational performance in public organizations
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In: Government Information Quarterly, Vol. 40, No. 2, 101797, 01.04.2023.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Examining how AI capabilities can foster organizational performance in public organizations
AU - Mikalef, Patrick
AU - Lemmer, Kristina
AU - Schaefer, Cindy
AU - Ylinen, Maija
AU - Fjørtoft, Siw Olsen
AU - Torvatn, Hans Yngvar
AU - Gupta, Manjul
AU - Niehaves, Bjoern
N1 - Publisher Copyright: © 2022 The Authors
PY - 2023/4/1
Y1 - 2023/4/1
N2 - Developing the capacity to digitally transform through AI is becoming increasingly important for public organizations, as a constantly growing number of their activities is now becoming AI-driven. This prompts an understanding of how public organizations should organize in order to derive value from AI, as well as in which forms can value be realized. Against this background, this paper examines how AI capabilities can lead to organizational performance by inducing change in key organizational activities. Using a survey-based study, we collected data from European public organizations regarding the indirect effect AI capabilities have on organizational performance. Data was collected from 168 municipalities from three European countries (Norway, Germany, and Finland) and analyzed by means of structural equation modeling. Our findings show that AI capabilities have a positive effect on process automation, cognitive insight generation, and cognitive engagement. While process automation and cognitive insights are having a positive effect on organizational performance, we found that cognitive engagement negatively affects organizational performance. Our findings document the key resources that constitute an AI capability and showcase the effects of fostering such capabilities on key organizational activities, and in turn organizational performance.
AB - Developing the capacity to digitally transform through AI is becoming increasingly important for public organizations, as a constantly growing number of their activities is now becoming AI-driven. This prompts an understanding of how public organizations should organize in order to derive value from AI, as well as in which forms can value be realized. Against this background, this paper examines how AI capabilities can lead to organizational performance by inducing change in key organizational activities. Using a survey-based study, we collected data from European public organizations regarding the indirect effect AI capabilities have on organizational performance. Data was collected from 168 municipalities from three European countries (Norway, Germany, and Finland) and analyzed by means of structural equation modeling. Our findings show that AI capabilities have a positive effect on process automation, cognitive insight generation, and cognitive engagement. While process automation and cognitive insights are having a positive effect on organizational performance, we found that cognitive engagement negatively affects organizational performance. Our findings document the key resources that constitute an AI capability and showcase the effects of fostering such capabilities on key organizational activities, and in turn organizational performance.
KW - Artificial intelligence
KW - Artificial intelligence capabilities
KW - Organizational impact
KW - Organizational performance
KW - Business informatics
KW - Informatics
UR - http://www.scopus.com/inward/record.url?scp=85145719791&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/d3eee0df-b624-3ad9-8b20-b7329140cb99/
U2 - 10.1016/j.giq.2022.101797
DO - 10.1016/j.giq.2022.101797
M3 - Journal articles
AN - SCOPUS:85145719791
VL - 40
JO - Government Information Quarterly
JF - Government Information Quarterly
SN - 0740-624X
IS - 2
M1 - 101797
ER -